Please help me with Acc. Project. Thank You.

Exchange of Long-Term, Nommonetary Assets

Ledger Account Balances: :
Equipment... $ 70,000
Accumulated Depreciation... 65,100

Book value... $ 4,900

NEW EQUIPMENT:
Market Value: $ 84,000
Cash paid: $ 83,055

What is the amount of the Loss on Exchange of Assets?

Book value of asset 4,900
Trade in value
Cost of new asset - cash paid 945
Loss on exchange

Quote:

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Originally Posted by rehmanvohra

book value of asset 4,900
trade in value
cost of new asset - cash paid 945
loss on exchange

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3,955

Thank you! )

4900-945=3955